# Swell Ethereum (swETH)

> Swell Ethereum (swETH) is a liquid staking token for Ethereum, representing staked ETH and rewards, validated by Chainlink Proof of Reserves.

- Canonical URL: https://iq.wiki/wiki/swell-ethereum-sweth
- Categories: Cryptoassets
- Created: 2024-04-02T18:06:13.631Z
- Last updated: 2024-04-16T16:53:39.439Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**Swell Ethereum (swETH)** is a [liquid staking](https://iq.wiki/wiki/liquid-staking) token (LST) on the [Swell](https://iq.wiki/wiki/swell-network) protocol, representing [ETH](https://iq.wiki/wiki/ethereum) staked on the Ethereum network. [Chainlink Proof of Reserves](https://iq.wiki/wiki/chainlink) validates the underlying ETH. swETH functions as a repricing token, increasing in value over time as staking rewards accumulate. [\[1\]](#cite-id-d7hmp4m3lzh)  
  
  
# Overview  
  
Swell Ethereum (swETH), an [ERC-20](https://iq.wiki/wiki/erc-20) token, mirrors a user’s [staked](https://iq.wiki/wiki/staking) ETH on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain), encapsulating rewards, penalties, MEV, and execution layer ‘tips.’ While its quantity remains constant, its value grows with on-chain rewards accumulation, with total gains realized upon trading on the secondary market or permitted withdrawals post-Ethereum Shanghai upgrade, defining it as a reward-bearing token tracked via an exchange rate. [Liquid staking](https://iq.wiki/wiki/liquid-staking) decentralizes staking responsibilities between stakers and [node](https://iq.wiki/wiki/node) operators, enabling stakers to deposit any amount below 32 ETH and receive a liquid token representing their staked ETH and accrued rewards. This token operates akin to ETH in [DeFi](https://iq.wiki/wiki/defi), facilitating transfers, collateralization for borrowing, and [liquidity](https://iq.wiki/wiki/pol-proof-of-liquidity) provision while earning staking rewards, thus broadening participation in securing the Ethereum blockchain. [\[2\]](#cite-id-472hyjhuru6)  
  
  
# Use Cases  
  
swETH holders have various options to utilize their staked [ETH](https://iq.wiki/wiki/ethereum): [\[2\]](#cite-id-472hyjhuru6)  
  
* **Exit Staking**: They can sell their swETH for ETH on a [decentralized exchange](https://iq.wiki/wiki/decentralized-exchange), realizing gains based on the [Swell](https://iq.wiki/wiki/swell-network) exchange rate.  
* **Swell Vaults**: Deposit swETH into Swell’s in-protocol vaults to earn extra yield through [liquidity mining](https://iq.wiki/wiki/liquidity-mining).  
* **Provide Liquidity**: Utilize external DeFi integrations of swETH to become a [liquidity provider](https://iq.wiki/wiki/liquidity-providers), earning additional yield from [trading fees](https://iq.wiki/wiki/trading-fee) and liquidity mining incentives.  
* **Lending**: Earn extra yield by supplying swETH to lend/borrow DeFi protocols.  
* **Borrowing**: Use swETH as [collateral](https://iq.wiki/wiki/collateral) to borrow assets from lending protocols.